SpiceJet shares trim most of early gains, settles nearly 1% higher

Shares of SpiceJet on Thursday trimmed most of their early gains and ended nearly 1 per cent higher.

During the morning trade, the stock had jumped 7.50 per cent after the company said its promoter and Chairman Ajay Singh will infuse Rs 500 crore into the airline, which will help boost its financial position as well as tap additional funds from a government scheme.

The stock climbed 7.50 per cent to Rs 33.50 during the day on the BSE after a firm beginning. However, the stock failed to hold on to the strong momentum and gave up most of their early gains and ended at Rs 31.38 apiece, up 0.71 per cent.

In volume terms, 73.81 lakh shares of the company were traded on the BSE during the trade.

The budget carrier, which is facing multiple headwinds, including disputes with aircraft lessors, has been looking to raise funds.

In a statement on Wednesday, SpiceJet said the fresh equity infusion by Singh, who is also the Chairman and Managing Director, will help the carrier in accessing additional credit facilities of Rs 206 crore under the Emergency Credit Line Guarantee Scheme (ECLGS).

During the meeting of the airline's board, which considered options for raising fresh capital, Singh offered to infuse Rs 500 crore.

The board has agreed to "issue equity shares and/or convertible securities/equity share warrants on preferential basis to the promoter and/or the promoter group of the company, on preferential basis, in one or more tranches" for up to Rs 500 crore.